| What is it? |
| Developed
by Thomas Saaty, AHP provides a proven, effective means to deal with complex decision
making and can assist with identifying and weighting selection criteria, analyzing the
data collected for the criteria and expediting the decision-making process. |
| Why is it
important? |
| AHP
helps capture both subjective and objective evaluation measures, providing a useful
mechanism for checking the consistency of the evaluation measures and alternatives
suggested by the team thus reducing bias in decision making. Combined with meeting
automation, organizations can minimize common pitfalls of team decision making process,
such as lack of focus, planning, participation or ownership, which ultimately are costly
distractions that can prevent teams from making the right choice. |
| When to use it? |
| When
making complex decisions involving multiple criteria. |
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| How to use it? |
| The
first step is for the team to decompose the goal into its constituent parts, progressing
from the general to the specific. In its simplest form, this structure comprises a goal,
criteria and alternative levels. Each set of alternatives would then be further divided
into an appropriate level of detail, recognizing that the more criteria included, the less
important each individual criterion may become. Next, assign a relative weight to each one.
Each criterion has a local (immediate) and global priority. The sum of all the criteria
beneath a given parent criterion in each tier of the model must equal one. Its global
priority shows its relative importance within the overall model.
Finally, after the
criteria are weighted and the information is collected, put the information into the
model. Scoring is on a relative basis, not an absolute basis, comparing one choice to
another. Relative scores for each choice are computed within each leaf of the hierarchy.
Scores are then synthesized through the model, yielding a composite score for each choice
at every tier, as well as an overall score. |
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| Food for Thought ! |
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